Watch as we discuss the easiest solution for dealing with title clouds . . . ignore them! It’s an option that works in a variety of situations as you’ll see in the video.
Transcript:
Hi! Casey Denman here with TaxSaleAcademy.com. In past videos, we’ve discussed tax sales and title insurance. And if you recall, if you purchase a piece of property at a tax sale auction, you won’t be able to get title insurance without further action. We’ve also discussed two solutions – the Suit to Quiet Title and the Tax Sale Certification Process. If you haven’t viewed these videos yet, take a second and review them. There’s a lot of useful information there. You can find them on YouTube or on TheTaxSaleAcademy.com.
Now, both of those solutions – the Suit to Quiet Title and the Tax Sale Certification Process – take time and they take money. And a lot of times, I’m not willing to invest the time or the money into these processes to cure the titles. Which leads us to my favorite, our third solution, which is to do absolutely nothing at all. You heard me. Don’t do anything. Don’t worry about the whole title insurance issue.
You have to remember here; you’re buying these properties at deep, deep discounts. Often, as low as 5% or 10% of true and fair market value. So why not pass along the savings to a buyer by wholesaling it to them? Don’t be greedy. Don’t hold out for true and fair full market value on each and every property. By doing this, you’re going to waste a lot of time and a lot of money curing the title through the Suit to Quiet Title Process or the Tax Sale Certification Process. You’re going to also waste a lot of time while it sits on the market, waiting for a buyer to pay you full market value. It’s just silly.
The best way to make money in this business, in the tax sale business, is to get in, sell your property, get out with your capital and your profit and move on to another property and keep doing it over and over and over. You don’t need to sit on a property and list it for 12 months or 18 months, hoping it sells at full market value. It’s just foolish and it’s just silly when there are a lot of properties you’re going to be missing out on. This process just eliminates the need to clear title issues. You don’t worry about title issues. Sell it as is.
Now, of course you’re going to inform your buyer that there might be title issues. But you’re also going to tell your buyer, “Listen, I’m selling it to you at 40% or 50% of its fair market value. There’s a huge cushion built in that gives you plenty of money to invest in your own Suit to Quiet Title or your own Tax Sale Certification Process.” Sell it to them. Let them deal with the issues. I do this on a lot of my properties.
Of course, I do this mainly on my lower dollar value properties. A piece of property that’s worth half a million dollars or a million dollars, you’re going to typically have to sell with some sort of title insurance. But on the lower value properties – we’re talking $30,000 or less – you’re able to sell these properties through usually a Quick Claim Deed to a buyer without title insurance and let them deal with the title insurance issue.
For more information on the very lucrative tax sale business, check out my website at TaxSaleAcademy.com.